OTTO China helps partners expand into EU markets

The 76-year-old German OTTO Group is a global leader in e-commerce and retail, known for its international reach, diversification and innovation. Its flagship platform, OTTO.de, counts 12.2 million active users in Germany. As the group's wholly-owned Chinese subsidiary, OTTO China leverages its strong European roots and expertise to help Chinese partners enter the European market efficiently and in full regulatory compliance. Starting from Germany — a thriving hub for business — the company is working alongside these partners to begin a new chapter in global expansion.

Xu Beixi, CEO of OTTO China, observes that growing uncertainties in US-China trade have prompted many Chinese partners to rethink their global strategy. Europe is no longer just an option but a strategic requirement — a pivotal moment in China-EU trade relations.

A meaningful trend is taking shape. Xu pointed out that Chinese cross-border partners are building local presences across Europe and developing multiple sales channels to mitigate risk. While strengthening compliance, they continue to explore niche markets and specialized sectors. Establishing European warehouses and localizing supply chains are key steps that not only speed up delivery and enhance the customer experience but also boost operational efficiency and mitigate tariff exposure.

Meanwhile, Chinese partners' mindsets are evolving. "They are pivoting from cost-leadership to value creation, increasingly focusing on brand storytelling, elevating user experiences, and building an emotional connection with customers," Xu said. "Sustainability has also become a real differentiator — from tracking carbon footprints and setting validating science-based targets to building ESG systems and gaining eco-certifications. Environmental responsibility is increasingly turning into consumer trust."

Founded in 2020, OTTO China exclusively handles OTTO.de's business development in China, dedicated to enabling high-quality Chinese partners to enter the global market. OTTO has a reputation as a stable European retailer with strong customer loyalty. "We use a two-step verification system: exclusive invitation and manual approval," Xu said. "Partners must have a legal entity in Germany. Through a comprehensive assessment of merchant qualifications, we ensure full compliance with the standards and requirements of the German market at the corporate level, establishing a foundation of trust and ensuring a premium, localized experience for both consumers and partners."

This model is quite unique in the industry. "By strictly controlling the number of partners, we are able to provide refined services such as dedicated Key Account Managers and a four-hour emergency response," Xu said. "From 2024, we introduced a flexible semi-management option alongside our partner self-management model. Even top-performing partners without a German entity can now apply to join after evaluation, while keeping control over core decisions like pricing."

Over six years of careful development, OTTO China has kept its partner list under 300 — favoring depth and quality over sheer size. "We don't share individual partners' data," Xu said, "but to give an example, publicly listed Songmics Home reported revenue on OTTO surpassing 350 million yuan ($50.5 million) in 2024, having grown more than 40 percent year-on-year, one of their standout growth channels worldwide."

Looking forward, OTTO China plans to deepen cooperation with Chinese brands, aiming to serve as a "guide" or "navigator", not just a "sales shelf" for their European expansion. In 2025, it partnered with the popular European fashion platform About You to jointly empower Chinese partners on their journey into Europe.

To make the most of European opportunities, Xu advised Chinese partners to move from competing on price, to quality, and eventually to value. That means excelling in several areas: making compliance a nonnegotiable foundation; building user-focused operations that deliver great products and experiences; embracing sustainability and social responsibility; and smartly using digital tools and artificial intelligence — from product descriptions to marketing — to raise efficiency.

Only by grounding themselves in quality, centering on value and responding thoughtfully to the market can Chinese brands find lasting success in these wide-open waters.